A month has gone by since the last earnings report for CACI International (CACI Quick QuoteCACI - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CACI International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

CACI International Q4 Earnings Beat Estimates, Revenues Rise Y/Y

CACI reported fourth-quarter fiscal 2026 adjusted earnings of $8.91 per share, which beat the Zacks Consensus Estimate of $7.26 by 22.7%. Adjusted EPS increased 6.1% year over year. However, GAAP diluted EPS declined 1.3% to $7.05, as higher operating income was offset by increased interest expense related to the ARKA acquisition and a higher tax provision.

Quarterly revenues increased 17.6% year over year to $2.71 billion, surpassing the Zacks Consensus Estimate by 0.36%. Organic revenue growth was 11.6%, while revenues also increased 15.2% sequentially.

CACI's Q4 and FY26 Performance in Details

During the quarter, contract awards totaled $1.6 billion, with approximately 40% representing new business. Total backlog increased 1.9% year over year to $32 billion, while funded backlog rose 28.6% to $5.4 billion, providing solid revenue visibility.

Profitability improved meaningfully during the quarter. EBITDA margin expanded to 13%, up 150 basis points year over year, supported by stronger execution, favorable business mix and a small gain from a U.K. divestiture. EBITDA increased 33.5% year over year to $353.1 million, while income from operations climbed 31.7% to $272.2 million.

Management highlighted several notable contract wins during the quarter, including deployment of its SkyValor counter-drone system for the Department of War, a technology modernization contract with the Department of Veterans Affairs worth up to $308 million, classified national security awards exceeding $236 million, and multiple defense modernization and cloud transformation programs.

For fiscal 2026, revenues increased 10.9% to $9.57 billion, driven by 7.2% organic growth. Adjusted EPS rose 12.7% to $29.83, while EBITDA margin expanded to 12.3%. Annual contract awards totaled $10.2 billion, resulting in a 1.1x book-to-bill ratio.

CACI's Balance Sheet & Cash Flow

CACI continued to generate strong cash flows during the quarter. Net cash provided by operating activities, excluding MARPA, increased 67.4% year over year to $279.7 million, while free cash flow rose 67.4% to $232.9 million, supported by disciplined working capital management. Days sales outstanding improved to 55 days from 56 days a year earlier.

The company expects leverage to decline more rapidly than previously anticipated. Pro forma net leverage stood at approximately 3.7x following the ARKA acquisition, and management now expects leverage to return to the low-3x range by June 2027, one quarter earlier than previously projected, supported by consistent cash generation.

CACI Initiates FY27 Guidance

For fiscal 2027, CACI expects revenues between $10.65 billion and $10.85 billion, suggesting growth of 11.3-13.4%, including 6.1-8.2% organic growth. Adjusted net income is projected in the range of $735-$755 million, while adjusted EPS is expected between $32.96 and $33.86.

The company projects an EBITDA margin in the high-12% range and expects free cash flow of at least $900 million, supported by continued revenue growth, margin expansion and efficient working capital management. Capital expenditures are expected to be approximately $115 million, while net interest expense is projected at roughly $288 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -11.07% due to these changes.

VGM Scores

At this time, CACI International has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CACI International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.